2005-07-12PLEASE TURN OFF AT CELL PHONES & PAGERS IN COUNCIL CHAMBERS.
AGENDA
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Open meeting
Action approving agenda, with any amendments
Action approving minutes: June 28, 2005 regular meeting
July 5, 2005 special meeting
Consideration/Action Approving the Tax Increment Pledge
Agreement
Adjourn
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MOUND HOUSING AND REDEVELOPMENt' MF_.Et'ING
JUNE 28, 2005
The Housing and Redevelopment Authority of and for the City of Mound, Minnesota,
met in regular session on Tuesday, June 28, 2005, at 7:20 p.m. in the council chambers
of city hall.
Members Present: Chairperson Pat Meisel; Commissioners Bob Brown, Mike Specht,
John Beise and David Osmek.
Others Present: City Attorney John Dean, Executive Director Kandis Hanson, City
Clerk Bonnie Ritter, Community Development Director Sarah Smith, Jim Dailey, Sharon
Woodwill
1. Open Meetinq
Chair Meisel opened the meeting at 7:20 p.m.
2. Approve Agenda
MOTION by Specht, seconded by Beise to approve the agenda. All voted in favor.
Motion carried.
3. Approve Minutes
MOTION by Beise, seconded by Specht to approve the minutes of the May 24, 2005
meeting. All voted in favor. Motion carried.
4. Management Report on Indian Knoll Manor
The following report was given on Indian Knoll Manor:
A. May Bank Statement
B. May Income Statement
C. Review of Bills: MOTION by Osmek, seconded by Brown to approve payment of
the bills for May, 2005. All voted in favor. Motion carried.
D. Manager's Report
(1) Vacancy Update: There is currently one vacancy. One other unit is being
updated to be 100% handicapped accessible.
(2) Spring projects - driveway status
(3) New On-Site Manager Kathy Saul hired and tenant representative is
Sharon Woodwill.
5. Recess
MOTION by Osmek, seconded by Brown to recess at 7:27 p.m.
Motion carried.
All voted in favor.
6. Reconvene
MOTION by Osmek, seconded by Specht to reconvene at 9:10 p.m. All voted in favor.
Motion carried. It was noted that the meeting was recessed at 7:27 in case business
came up at the Council meeting that needed HRA action, but this was not the case.
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HRA Meeting - June 28, 2005
7. Adjourn
MOTION by Osmek, seconded by Specht to adjourn at 9:10 p.m.
Motion carried.
All voted in favor.
Attest: Bonnie Ritter, City Clerk
Chairperson Pat Meisel
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MOUND HOUSING AND REDEVELOPMENT AUTHORITY
JULY 5, 200,5
The Housing and Redevelopment Authority in and for the City of Mound, Minnesota,
met in special session on Tuesday, July 5, 2005, at 8:00 a. m. in the council chambers
of city hall.
Members Present: Chairperson Pat Meisel; Commissioners Bob Brown, Mike Specht,
John Beise and David Osmek.
Others Present: City Attorny John Dean, Executive Director Kandis Hanson, City Clerk
Bonnie Ritter, Community Development Director Sarah Smith, Public Works Director
Carlton Moore, Chuck Alcon, Tom Stokes, Dave Neuman
1. Open Meeting
Chair Meisel called the meeting to order at 8:00 a.m.
2. Consideration/Action on Amendments to the Contract for Redevelopment by
and between the HRA and Mound Harbor Renaissance Development, LLC.
Chair Meisel turned the meeting over to Acting Chair Osmek because of a possible
perceived conflict of interest.
John Dean explained that because the bids received were significantly lower than
anticipated, there needs to be some revision as to land conveyance and appropriate
amounts of letters of credit, etc. This amendment addresses these items, and he
recommends approval.
MOTION by Brown, seconded by Beise to approve the First Amendment to the Contract
for Private Redevelopment between the Mound HRA and Mound Harbor Renaissance
Development, LLC. The following voted in favor: Brown, Beise, Specht and Osmek.
The following voted against: None. Meisel abstained from voting. Motion carried.
Chair Meisel returned to preside over the meeting
3. Adjourn
MOTION by Osmek, seconded by Beise to adjourn at 8:07 a.m. All voted in favor.
Motion carried.
Attest: Bonnie Ritter, City Clerk
Chair Pat Meisel
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HRA RESOLUTION NO.
RESOLUTION AUTHORIZING EXECUTION OF A
TAX INCREMENT PLEDGE AGREEMENT WITH THE
CITY OF MOUND RELATING TO TAXABLE GENERAL
OBLIGATION TAX INCREMENT TEMPORARY BONDS, SERIES 2005D
TO BE ISSUED IN AN AMOUNT NOT TO EXCEED $3,875,000
WHEREAS, pursuant to a resolution approved by the City Council of the City of Mound (the
"City") on July 12, 2005 (the "Bond Resolution"), and the authority conferred by Minnesota Statutes,
Section 469.178, and Minnesota Statutes, Chapter 475, the City has agreed to issue and sell general
obligation bonds of the City in an original aggregate principal amount not to exceed $3,875,000,
designated the Taxable General Obligation Tax Increment Temporary Bonds, Series 2005D (the
"Temporary Bonds");
WHEREAS, pursuant to the Bond Resolution and its obligations under Minnesota Statutes,
Section 475.61, Subdivision 6, the City has covenanted to issue and sell definitive bonds (the "Definitive
Bonds") prior to the maturity of the Temporary Bonds if the Temporary Bonds cannot be paid at maturity
from tax increment revenues or other revenues derived from the TIF District or from other funds
appropriated by the City Council;
WHEREAS, the HRA has agreed to pledge certain tax increment revenues to the City for the
payment of principal and interest on the Temporary Bonds and for the payment of principal and interest
on the Definitive Bonds; and
WHEREAS, there has been presented to the I-IRA a Tax Increment Pledge Agreement between
the HRA and the City (the "Pledge Agreement") providing for the pledge of certain tax increments from
the Mound Harbor Tax Increment Financing District within the Mound Harbor Project Area in the City to
the payment of principal and interest on the Temporary Bonds and to the payment of principal and
· interest on the Definitive Bonds;
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners (the "Board")' of the
I-IRA, as follows:
1. The Chair and Executive Director of the I-IRA are hereby authorized to execute and
deliver the Pledge Agreement in substantially the form on file in City Hall.
2. This resolution shall be effective as of the date hereof.
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Adopted by the Housing and Redevelopment Authority in and for the City of Mound, Minnesota
this __ day of ,2005.
Attest:
Chair
Executive Director
MU200-127(JAE)
265180v. 1
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TAX INCREMENT PLEDGE AGREEMENT
by and between
CITY OF MOUND, MINNESOTA
And
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MOUND, MINNESOTA
THIS AGREEMENT is made and entered into on or as of the __ day of ,2005, by and
between the City of Mound, Minnesota (the "City"), and the Housing and Redevelopment Authority in
and for the City of Mound, Minnesota (the "HRA").
RECITALS
WHEREAS, the City and the I-IRA duly established the Mound Harbor Tax Increment Financing
District ("TIF District") within the Mound Harbor Project Area (the "Project") pursuant to Minnesota
Statutes, Sections 469.001 through 469.047, as amended (the "HRA Act") and Sections 469.174 to 469.1799
(the "TIF Act");
WHEREAS, the HRA caused to be prepared a Tax Increment Financing Plan for the TIF District
(the "TIF Plan") and the HRA approved the TIF Plan on March 22, 2005;
WHEREAS, the City Council of the City approved the TIF Plan on March 22, 2005;
WHEREAS, pursuant to the authority conferred by Minnesota Statutes, Section 469.178 and
Minnesota Statutes, Chapter 475, the City has agreed to finance projects undertaken by the HRA in the
TW District through the issuance of its Taxable General Obligation Temporary Tax Increment Bonds, Series
2005D, dated August 1, 2005, to be issued in the original aggregate principal amount not to exceed
$3,875,000 (the "Temporary Bonds");
WHEREAS, the principal and interest due on the Temporary Bonds will be paid from tax increment
revenues resulting from increases in taxable valuation of real property in the TIF District and from
definitive bonds (the "Definitive Bonds") the City has covenanted to issue and sell pursuant to a
resolution adopted by the City Council on July 12, 2005 (the "Bond Resolution");
WHEREAS, the HRA has agreed to pledge certain tax increment revenues attributable to the TW
District to the City for the payment of the principal and interest on the Temporary Bonds and for the
payment of the principal and interest on the Definitive Bonds, when issued and sold by the City; and
WHEREAS, pursuant to Minnesota Statutes, Section 469.178, Subdivision 2, any agreement to
pledge tax increment revenues must be made by written agreement by and between the HRA and the City
and must be filed with the Taxpayer Services Division Manager'of Hennepin County.
NOW, THEREFORE, the City and the HRA mutually agree to the following:
(1) The City will issue and sell the Temporary Bonds in accordance with the Bond
Resolution, and if necessary to pay the principal and interest due on the Temporary
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(3)
Bonds, the City will issue and sell the Definitive Bonds, as it has covenanted to do
pursuant to the Bond Resolution.
The proceeds from the sale of the Temporary Bonds will be applied in accordance with
the Bond Resolution.
The HRA pledges tax increment revenues generated by the TIF District from certain
property described in the TIF Plan (the "Available Tax Increment") to the payment of
principal and interest on the Temporary Bonds and the Definitive Bonds, subject to the
terms of this Agreement. At least three (3) business days prior to each debt service
payment date for the Temporary Bonds and the Definitive Bonds, there shall be
transferred from the account of the TIF District to the Debt Service Fund maintained by
the City for the payment of the Temporary Bonds or the Definitive Bonds, an amount of
Available Tax Increment, which when taken together with taxes levied for such purposes
in accordance with the Bond Resolution and amounts already on deposit in such Debt
Service Fund, is equal to the principal of and interest on the Temporary Bonds or
Definitive Bonds to become due on the subject payment date. Any Available Tax
Increment in excess of 105% of the principal and interest due with respect to the
Temporary Bonds or the Definitive Bonds on any payment date may be retained by the
HRA in the account for the TIF District and applied to any costs of the Project in
accordance with law.
(4)
Without regard to anything in this Agreement to the contrary, Available Tax Increment
may be pledged (at the HRA's option on a parity, superior or subordinate basis) to pay
principal of and interest on the Temporary Bonds, the Definitive Bonds, and any other
obligations issued by the City, HRA or any other public body to finance public
redevelopment costs paid or incurred by the HRA in the Project. The I-IRA reserves the
right to release all or any portion of Available Tax Increment from the pledge under this
Agreement (including without limitation the release of Available Tax Increment from any
specific parcel within any District) to the extent permitted by law, provided that in no
event may the HRA reduce the pledge such that Available Tax Increment is reasonably
expected to pay less than twenty percent (20%) of principal and interest on the Definitive
Bonds.
(5)
An executed copy of this Agreement shall be filed with the Taxpayer Services Division
Manager of Hennepin County pursuant to Minnesota Statutes, Section 469.178,
Subdivision 2.
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IN WITNESS WHEREOF, the City and the HRA have caused this Agreement to be duly
executed on their behalf and their seals to be hereunto affixed and such signatures and seals to be attested,
as of the day and year first above written.
ATTEST:
CITY OF MOUND, MINNESOTA
By
City Manager Mayor
(SEAL)
ATTEST:
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF MOUND,
MINNESOTA
Executive Director
By.
Chair
MU200-127(JAE)
265175V.1
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STATE OF MINNESOTA
COUNTY OF HENNEPIN
TAXPAYER SERVICES DIVISION MANAGER'S
CERTIFICATE
I, the undersigned Taxpayer Services Division Manager of Hennepin County, Minnesota, hereby
certify that a Tax Increment Pledge Agreement by and between the City of Mound, Minnesota and the
Housing and Redevelopment Authority in and
August __, 2005, relating to the City's $
Series 2005D has been filed in my office.
WITNESS my hand and official seal this
for the City of Mound, Minnesota, dated as of
General Obligation Tax Increment Temporary Bonds,
day of ,2005.
(SEAL)
Taxpayer Services Division Manager
Hennepin County, Minnesota
By.
Deputy
MU200-127(JAE)
265175
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